Diesel Futures Slip as Ukraine Crisis Threat to Oil Supply Eases

March 4 (Bloomberg) -- Diesel futures fell to a two-week
low, dropping along with crude oil on lessening concern that
tensions between Russia and Ukraine will disrupt energy supply.

Prices slipped 1.3 percent. Russian President Vladimir
Putin said he sees no immediate need to invade eastern Ukraine
and that troops stationed in Crimea, where Russia keeps its
Black Sea fleet, have only been securing their bases. Russian
military exercises along Ukraine’s eastern border ended on
schedule today.

“The market has come off on the fact Putin has ended his
military drills,” said Andy Lipow, president of Lipow Oil
Associates LLC in Houston. “The market will calm down a bit
unless we see tensions escalate in Ukraine over the next few
days.”

Ultra low sulfur diesel for April delivery fell 3.98 cents
to $3.0407 a gallon on the New York Mercantile Exchange, the
lowest settlement since Feb. 13. Volume was 0.2 percent above
the 100-day average at 3:18 p.m.

In his first public remarks since protesters overthrew
Viktor Yanukovych last month, President Putin reserved the right
to use force to protect ethnic Russians. The U.S. has threatened
sanctions against Russia and is preparing $1 billion of aid to
bolster Kiev’s interim government.

The average U.S. pump price gained 0.1 cent to $3.46 a
gallon, according to data from Heathrow, Florida-based AAA.
Prices have risen 25 consecutive days to the highest level since
Sept. 23. Drivers are paying 28.6 cents less than a year ago.